Hi Technical article: how to maximise return on machine investment.

Hi Technical article: how to maximise return on machine investment.

‘How to maximise return on machine investment’

Despite the significant investment that a new machine represents, the fact that around 70 per cent of machines are purchased un-tooled means that many manufacturers are still missing opportunities to reduce payback times and improve the return on investment (ROI) from their capital outlay. According to Sandvik Coromant, getting machine investment right from the start is the key to reducing payback times.

Hi 5 steps to help align process improvement with strategy!.

Hi 5 steps to help align process improvement with strategy!.

The PEX Network flagship report explores 5 practical steps to help better align process improvement with strategy, as well as other critical issues facing process professionals.

PEX Network surveyed over 400 process professionals to find their top priorities for the year ahead. 

These findings were used to create the PEX Network annual report which highlights trends in investment, what challenges are ahead for process professionals and what are the top priorities for 2015.

Key Findings include:

• Linking process improvement with top level business strategy ranks as the number one priority for the second year running
• Nearly 50% of companies have identified process excellence as one of their top priorities in the year ahead
• Investment in all categories of technology is up year on year, with “Big Data” and Analytics emerging as the top investment area for the year ahead
• Many names exist for process excellence approaches and methodologies and this “brand confusion” may contribute to a lack of general awareness of process improvement as a core capability within companies

The research and interviews conducted for the report provides advice, facts and recommendations that will help companies create a blueprint for success.

Hi Spot; A new dawn for Saudi market, scepticism on Dubai.

Hi Spot; A new dawn for Saudi market, scepticism on Dubai.

Saudi Arabia announces plans to open its course to foreigners leading experts to expect a bullish response from investors.

Following last month’s news that the Tadawul exchange will open up to direct foreign investment, more than two thirds of leading investors have expressed their interest in increasing their stakes in the $550 billion valued STOCK MARKET, a Reuters survey has found.

Although there has been no official indication, the move is set to pave the way for Saudi Arabia’s inclusion in the MSCI EMERGING MARKETS index.

Speaking to AMEInfo’s sister publication TRENDS, head of Mena Equities, Bassel Khatoun, explained: 

“Entry into the MSCI EM index would likely boost TRADING volumes, enhance market liquidity and potentially bring down transaction costs through improved scale effects.”

The benefits to the Saudi economy will be vast, as the government attempts to revamp its non-oil industries. 

Namely, the introduction of foreign investors is also likely to accelerate M&A activity, as its private sector will be monitored more closely. 

Anum Saleem of the Eversheds Saudi Arabia office says 

“this will bode well for the Saudi private sector as their BUSINESS VALUATIONS are likely to increase serving as an impetus to entrepreneurship and employment opportunities for the local population.”

Moreover, according to Mena Equities, 

“such measures are likely to lead to an increase in initial public offerings (IPOs), thus leading to a much-needed deepening of the equity market in the region and improved sentiment from global investors.”

While sentiments and investor confidence in the region may well boom with this development, concerns have been raised that companies and shareholders from around the GCC may redirect much of their capital to Riyadh.

According to the Reuters survey, INVESTMENT MANAGERS have responded bearishly to the UAE’s market forecast, with only seven per cent willing to increase their equity allocations and 47 per cent expected to slow down their UAE activity. 

Citing overheated prices and inadequate regulation, particularly brought to light throughout Arabtec’s market roller coaster in previous months, the opening of Tadawul to foreign investors may redefine the appeal of the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX).

In saying this, experts remain adamant that there will be no mass outflow of funds from other GCC MARKETS into the Tadawul. Instead, new capital will be created. Moreover, with development giants Damac and Emaar’s retail branch, Emaar Malls, expected to be listed on the DFM in the coming weeks, with a total market capitalisation of $12.5 billion, Dubai’s market is also set for an exciting H2.

Hi ENGINEERING EFFICIENCY/EFFECTIVENESS - KEY METRICS!.

Hi ENGINEERING EFFICIENCY/EFFECTIVENESS - KEY METRICS!.

Companies or organizations often misuse Engineering resources at the expense of accomplishing the goals for these technical resources.  

Measurement is key to identification of the activities and limit of the “leaks” affecting the department.  

It has been said “you can only manage what you can measure” and measurement is key to an efficient/effective engineering department or organization.

As a guiding principle, application of metrics should embody these characteristics:

• simple to record and track; minimize the total number of measures.
• meaningful in relation to the work at hand and practical.
• related to or in support of the business goals.
• kept active and accurate (revise as required).
• available at all times to key personnel responsible (post or distribute).
• reviewed periodically with all of the personnel (obtain feedback).
• management interest, involvement and support in achieving results.

The metrics applied should be tailored to the activity or department and documented using a meaningful frequency.  

Many of the metrics may stand alone or be plotted against hours, orders or project elements.  

For an on-going effort such as backlog or changes per a base number of features, a rolling average may be desirable in addition to a single time related value.

In other words, focus on the issues important to the business and activities key to success.  

Initiate one or two metrics per area of interest or product type.  

Begin with a few immediately and grow into the desired full set.

The following list is broader than needed but it provides an indication of the types of metrics that can be applied.  

This list assumes a business that supplies a product or service per customer request or potential multiple selection of model sizes or custom features.

STAFFING:

• Hours spent (or % of total) for submittals, sales orders, product development, manufacturing support, change, or “other” support. 

ORDERS:

• Total number of active orders per product group over time.
• Number of submittals in process vs active orders (backlog).
• Schedule performance, actual vs estimated, or % on time.

SUBMITTALS:

• Estimated hours per order vs actual hours per order.
• Number of sales orders in process and hours required.
• On time (schedule) release to next group (release to design).
• Average drafting hours per order or per estimate of project.
• Available man-hours per product vs backlog hours per product.
• Number of changes: pre and post release per order or project.

DESIGN/DRAFTING:

•  Estimated hours per order vs actual hours per order or project.
• Number of sales orders in process and hours required.
• On-time (schedule) release to production (days missed included).
• Average drafting hours per order or per project element.
• Available man-hours per product vs backlog hours per product.
• % errors vs total number of drawings per order, time period, project.
• Number of changes pre and post release (per order, project, etc.).

DESIGN/ENGINEERING:

• Proposals won vs total submitted.
• Estimated hours per order, project vs actual expended.
• Number of sales orders in process and hours required.
• Available man-hours per product vs backlog hours per product.
• Number of changes, pre and post release.
• % of corporate revenue from products developed in last 4 years.

ENGINEERING/PRODUCT QUALITY:

• Warranty expense as a % of shipped $.
• Field or customer complaints vs total items shipped.
• Retrofit or rework $ as % of shipped $.
• Engineering hrs addressing complaints vs total available.
• Product or component MTBF (mean time between failures).

Hi Mining Top Tips Double!! WHAMMY!

Hi Mining Top Tips Double!! WHAMMY! 

Hi Six Tips for Business Improvement in Mining:

Throughout the years, the concept of ‘business improvement’ has evolved from a cost-savings initiative to a process that has driven efficiency and raised productivity across numerous industries. 

From companies like Toyota to Rio Tinto, it has been tweaked and adapted for any imaginable scenario and there’s a big markets out there seeking business improvement advice.

 

Business improvement can be a timely and costly process, but it can yield great dividends. 

To ensure your organisation will benefit from it, here are some simple steps for those in mining who are considering business improvement.

 

Needless to say, these tips won't be applicable to all mining companies, so pick and choose the appropriate ones & leave a comment on what other tips you have.

1. Examine your culture(s);

At the heart of any business improvement initiative is change management. 

Whether it’s new machines for steel workers or implementing an offshore payroll system, culture is at the core of what businesses do, and to change this requires great effort. 

To make it easier for you and your teams down the track, it’s important to examine the corporate culture.

 

It is critical to understand who will be affected by corporate changes and consider how to communicate the vision of change to relevant parties. 

Of course, different parties will have different views on how to adopt change and improve processes.

 

Also, notice we said cultures, not culture. 

One frustration for many business improvement projects in mining is that because mine sites are so remote, employee culture varies from each mine site, so it’s worthwhile to spend time upfront to understand each of them and draw up a plan of attack specific to the site.

  

2. Communicate, communicate, communicate;

Too much has been written about communication and its role in business improvement, so we won't go on. 

Whether it’s communication between the Business Improvements department and the rest of the organisation, or board-level members to employees, communication is a fundamental part of business improvement that should be both transparent and clear.

 

3. Accurate Planning;

 

Whether it’s meeting production targets or reducing carbon emissions, accurate and realistic planning can be difficult in mining.

 

As Ivan Woolridge, Principal Business Excellence Advisor at Newcrest Mining observes, 

- “There remains a culture in mining where human effort and ingenuity are pitting against the randomness of nature”.

 

There will always be unforeseen circumstances when working with nature, and sometimes ‘nature’ can be used as excuse when teams fail to meet production targets.

Whether or not this is an adequate reason depends on the organisation.  

In mining, targets are perceived as guidelines instead of fixed goals, leading to missed targets, delayed timelines and waste.

4. Have a clear vision;

Effective business improvement involves cross-departmental teamwork and a clear vision from leaders who are driving the change.

 

When Rio Tinto used business improvement principles in its iron ore division in 2008, chief executive Sam Walsh said:

 

“This is very fundamental in the way that we structure our work… it’s not the senior management that implement the sort of significant improvement on the ground - it’s actually every single person working within Rio Tinto Iron ore and working within Rio Tinto.”

 

In this light, Integrated Project Delivery (IPD) should be a top priority in a business improvement plan. 

By assembling as many of the project participants as practical in the very beginning of the project, it ensures all parties have a clear vision of the end goal in sight.

5. Don't lose focus;

Continuing from the above point, in day-to-day operations, it’s easy to forget that business improvement is ultimately a long term goal. 

When changes happen and budgets blowout, it can distract from overarching goals. 

In such situations, the appropriate action may be to take a step back and analyse how it will affect the overall project.

 

As David Long, formerly of Sutter Health Group notes, “Efforts to manage and improve performance are aimed at improving total project performance… it is more important than reducing the cost or increasing the speed of any one activity”.

 

6. Seek external advice;

Whilst a costly option, seeking third party advice from consultants and business improvement experts may prove worthwhile. 

Not only do they have a plethora of experience under their belts, but it’s likely they may have worked on mining projects similar to yours. 

It’s common sense to shop around to see what work an external provider has done and what feedback they've received to make sure they're a reliable source of advice.

*- "Do you have any other tips for business improvement for mining projects? Share them below in the comments section".

Want To Know & Learn More About This Topic? Download The Event "Mining Procurement and Supply 2014"

 

Brochure "Click Here".

Hi 5 Top Tips for Performance Managing Your Suppliers to Success:

A big focus that keeps coming up time and time again is that of supplier performance management and getting back to basics with what you expect from your vendors in the mining industry. 

Based on research with over 100 procurement and supply chain executives in the mining sector from companies such as Rio Tinto, MMG, BHP Billiton, Fortescue Metals, Thiess, St. Barbara, Orica Mining Services and many more, here are top tips for improving the results from your suppliers:

1.       Review all SLAs and contracts in place to identify core KPIs – many long-standing vendor relationships will be based on contracts that have been in place for years, or even decades sometimes. 

They are often drafted by people who have now left the company, so it’s important to conduct regular reviews of all SLAs and contracts to understand what agreement is in place on both sides, and to ensure the terms are still beneficial in changed market environments. 

If the terms are no longer relevant or suitable, then it’s time for a change! If they are, ensure they're actually being adhered to, measured and rewarded when achieved.

There’s no point in having great, structured KPIs if they're not then measured and acknowledged.

2.       Where applicable, using end to end category management to derive more value from your supplier expenditure – utilising market experts to drive ongoing savings without an “end point” in sight, can help extract significantly more from your suppliers. 

The sustainable results it can deliver actually go beyond simple cost savings, and can extend into additional value, opportunities and upgrades for organisations. 

E2E category management can also be used to better design the supply model and improve inventory management.

3.       Shortlisting vendors across all services and categories – having a permanent short list that you can review on an annual, or less frequent basis, can reduce a lot of wastage time for more transactional purchases. 

A clear list of requirements helps whittle down the applicants quickly, and safety standards should be top of this list in the majority of categories.

4.       Understanding your suppliers’ delivery cycles and inventory to minimise stockpiles and revenue sunk in assets – whilst the temptation is often to have excess inventory and equipment on site (rather have too much than risk too little and have production ground to a halt), this can end up in vast amounts of money sitting around in the form of assets. 

That revenue is very valuable to the GM of a Mine if it can be freed up.

5.       Involve your suppliers early in any system or project overhauls – bringing suppliers to the table early when there are any significant changes to your company workings is usually beneficial for all parties. 

As with any stakeholders, early involvement usually means more engagement in any changes. 

Bringing long-standing suppliers in early can also help with their expertise and ability to identify any problems or opportunities with system or project shifts.

* - "If you've got any top tips, let us know so we can share with our members!."

Hi Industry Challenge.! Mining Discussions, Events, Webinars, Whitepapers & Much More!

Hi Industry Challenge.!
Mining Discussions, Events, Webinars, Whitepapers & Much More!

This Industry Challenge Shifts Focus On The Mining Sector & Introduces Utilising Data Analytics in Mining as the scope on mining ventilation is broadened to cover other aspects in the mining sector.

Hi Discussion Focus On; Utilising Data Analytics in Mining;

On Day One of Mining IQ’s Mine Automation and Communication conference taking place in Brisbane, Australia in April 2014, an interactive discussion was organised around the highly relevant topic of data. 

Inevitably with the growth in automated projects and operations, the volume and variety of data being collected by mining companies has significantly increased. However, with this comes the inevitable increase of challenges surrounding data collection, analysis and utilisation at a strategic level.

The attendees therefore were tasked with debating the following:

It’s all in the Data – Collecting Usable Data for Smarter Business Decisions

Data can often become redundant if it doesn’t reflect the most critical components and systems of your operation.

Furthermore, if information isn't captured at the right time, or in the right format, its value to the business is virtually diminished.

•             How you can ensure that the data you’re collecting is usable? What quality control measures should you have in place?
•             Quantity vs. Quality – which should be prioritised in automated operations?
•             Who is responsible in the organisation, or automation project, for data collection and analysis? The project manager, data scientist, engineer, or someone else?

In response to the first question, most were agreed that agreeing upon what you're trying to achieve and working back from there was imperative. 

You can then ascertain if the data you have is enabling you to make the correct decisions and achieve the results you set out for.

Heavily connected into deciding what you're trying to achieve, is who can get benefit from it? An important tip on this front was that you might need to take a more holistic view beyond just your own departmental needs to the wider organisation’s needs, even if it does end up with one other specific department, such as engineering.

The majority of the ensuing discussion focused around the second question and the quantity vs. quality challenge. The room was divided over how to take on this challenge, but formed into three quite distinct groups:

1. You shouldn't prioritise; you should focus equally on quality and quantity, and ensure you have a method in place to address both. 

Quantity is easier to manage in this relationship though, so long as you have the correct data collection and analytics systems in place that are appropriate for your individual business’ needs.

For managing quality, you should start with a clear requirement in mind that can drive the project forward. 

On this front you need to make sure the content of the data is appropriate for your site or project. 

This is relatively easy when looking at one particular function, such as production control, or drill and blast, but can become more demanding when you move towards applying it on a commercial or strategic level.

A particular mention was made here about the different challenges facing brownfield vs. greenfield sites. 

With greenfield sites it is easier to set a strategy and parameters from the get go, whereas this is inherently harder in a brownfield operation. 

This is particularly true in relation to suppliers, who will be used to working in a certain way with your operation.

2. Quality should come first – without quality, there is no point in gathering vast amounts of data. 

To improve quality, ensure you’re monitoring the way data is recorded. 

Once you are satisfied with the results of your smaller sample, you can start to increase the volume of data collection and analysis.

3. The final grouping felt that you should find quantity drives the quality.

Particular projects will finds that larger volumes of data can be far more useful than a small amount of highly accurate data.

Often to diagnose faults in equipment, or processes, you need a high frequency of data to be able to do this swiftly.

As you ramp up your data management strategy, and bring your equipment manufacturers and suppliers into the equation, you have to figure out how you can improve the quality of your data management, from the perspective of during collection, but also in terms of the analysis done on it. 

However, until you’re reaching large quantities of data on any operation, there’s not too much point in worrying about the quality. It’s only once you reach larger quantities that you have the potential of using it to improve production, or drive efficiencies in any real capacity.

Importantly when discussing quantity – bear in mind the more you start collecting, the more storage and backup requirements you will require – more is not always best!

When it came to the third question, this was decidedly difficult to get a definitive response from the room! The general consensus was that it depended upon the maturity of the operation, as there can be many stakeholders, champions, and project owners, and can be based both on site and in the office.

Hi Attend Focus Highlight; By Webinar Event 

Registration & Information:

*Register Your Participation in the Webinar Hosted by Mining IQ Held On Monday May 5, 2014 Highlighting Topic Of Big Data Analytics in Mining - Driving Results in your Business;

Click Here Or Image Above To Register For Webinar Event On May 5th 2014 Hosted By IQ Mining.

This online, free event will address the following shared industry challenges:

• Where to begin? How do you kick off your big data strategy and what’s really important to drive it.
• How you can facilitate faster and more responsive business decisions based on business analytics and predictive analytics.
• How to overcome stumbling blocks such as legacy systems, IP and privacy aspects as well as storage and security challenges.
• Understanding how to best define rules around how data gets procured, stored, maintained and used to achieve the best business outcomes.

View The Latest Mining Content, Event Details, Videos, Whitepapers & Alternative Webinars & Much More Mining Related Content, Visit Mining IQ By Clicking The Image Above Or The Link Available By Clicking Here.

Hi Added Focus Event; Mining and Quarrying Oman 2014

Visit the event official homepage For Further Event Details by clicking the link here.

Oman’s 700 km long and 150km wide mountains contain the best exposed ophiolite suite of rocks, which are favorable for copper, gold, silver, chromite, lead, nickel, manganese and zinc. 

Significant growth is expected over the next five years to help diversify the Sultanate's economy and create jobs for Omani nationals.

High set-up and operational costs mean Producers seek technologies, equipment and methods to increase production capacity, reduce downtime and optimise material flow to achieve higher profits. Drill and blast technologies can reduce processing costs and requirements whilst extending the lifecycle of the site. 

In addition, effective equipment selection and management can eliminate downtime and achieve higher material flow.

The recent requirement to add value to raw materials prior to export, has led to Producers seeking investment and partnerships to develop beneficiation plants and is likely to result in the development of a downstream industry.

3 reasons to invest in Oman's mining and quarrying industries:

• 1A. Expansion of existing mine and quarry sites to increase production capacity, output and profits.
• 2B. Development of processing facilities to add value to raw materials and support Oman's downstream industries for job creation.
• 3C. Eight large non-metallic mineral reserves were located in 2012/13 which are demanded by every industry - particularly with the limestone and gabbro required for the Dubai Expo 2020 and the Qatar 2022 Fifa World Cup. 
• 
  
• Download  Mining and Quarrying Oman 2014 Brochure by clicking the link here or view it below;

• *With such a high demand, prices for primary materials are expected to increase considerably.

What delegates say about Mining and Quarrying Oman:

"It was a very well organised event. The efforts are much appreciated and it was a great event for meeting similar industries and operators from the mining industry, where ideas and skills are exchangeable."

Director – Technical Services, Saudi Arabian Mining Company, Maaden.

Hi Continuum Topic Whitepaper; Aurizon presentation: Integrating Disparate SCADA Systems and How Virtualisation Can Help;

At IQPC's SCADA Australia conference in October 2013, Kanwar Cheema, Design Manager - Control Systems from Aurizon joined us to share with us Aurizon's experience of integrating disparate SCADA systems and how virtualisation can be instrumental in driving that successfully. Kanwar's presentation covered:

• Hurdles in integrating disparate SCADA systems.

• Benefits that can be achieved in efficiency and safety.

• Is virtualisation a solution that can contribute to integration?

• Could there be a “template system” that can be created?

Aurizon are joining us again this year for SCADA Australia , discussing practical methods for upgrading SCADA communication systems and networks to ensure reliability and speed. 

This year's SCADA event will focus on increasing SCADA departments' strategic value to the business. 

To achieve this they are looking to improve their communication systems and drive integration to enable them to use the extracted data across the organisation as a valuable source of information.

"If you're not positioned to harness the potential of your collected data sets then your attendance at this conference is a must! Learn from expert speakers from APA Group, BlueScope Steel, PanAust, Calibre Global and many more. Check out the website now by clicking the link here Or click the image below."

Click Here To Download The Whitepaper Presentation Or View & Gain Accesses Directly Viewing Below;